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Carnival confirms 10 more ships to exit fleet

Total of 18 ships will leave the fleet

Carnival Corporation has confirmed that 10 more ships are to leave its global fleet, taking the total number to 18.

During quarterly results, Arnold Donald, the CEO & president of Carnival Corporation, said: “We continue to take aggressive action to emerge a leaner, more efficient company. We are accelerating the exit of 18 less efficient ships from our fleet. This will generate a 12 per cent reduction in capacity and a structurally lower cost base, while retaining the most cash generative assets in our portfolio.”

The company projected an adjusted net loss of $1.7 billion in preliminary third quarter results.

“We will emerge with a more efficient fleet, with a stretched out newbuild order book and having paused new ship orders, leaving us with no deliveries in 2024 and only one delivery in 2025, allowing us to pay down debt and create increasing value for our shareholders,” Donald added.

According to Seatrade, Carnival expects only two of the four newbuilds originally slated for 2020 to arrive in this calendar year. In 2021, the company will deliver only five of the nine ships originally scheduled.

By Carnival retiring 18 of its most inefficient ships, and bringing in larger, more efficient replacements, the company predicts that it will have a 13 per cent larger berth size.

The company also said that its bookings for 2021 were at the “higher end” of the historical range and similar to booking positions in 2018.

While most of Carnival’s brands currently have their operations paused, Costa has now begun sailing again. The German line Aida will begin cruising again in November.

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